Orlando Multifamily Market Report
Vacancy Remains Elevated as Builders Ramp up
Construction to Support a Growing Resident Base
Upward supply pressure is evident. During the first half, roughly 3,800 units were taken off the market on a net basis, the most among all major Florida markets. Renter demand returning to positive territory during this span is a welcome sign, as the metro recorded three consecutive quarters of negative net absorption entering this year for the first time since 2007. Leasing activity has been strongest in Kissimmee-Osceola County and South Orange County in recent quarters, as these submarkets contain key employment centers that are proximate to major entertainment options. Despite this recent momentum, metrowide vacancy has continued to increase, climbing 30 basis points in the first half. A historic wave of apartment development heavily contributed to this rise in rental availability. Although vacancy may remain elevated in the near-term, the influx of new supply is warranted, as the metro is projected to gain roughly 220,000 new residents over the next five years.